Contact: Stuart Fine
Phone: (908) 469-1788
Email: stuart@carpedminc.com
Dynasil Announces Fiscal Year 2009 Results with a Doubling
of Revenues and Income from Operations
WEST BERLIN, N.J. - December 23, 2009 - Dynasil Corporation
of America (OTCBB: DYSL.OB) ("Dynasil" or the "Company"), a
rapidly growing manufacturer of specialized instruments and
products with applications in the homeland security/defense,
medical and industrial sectors, today announced the results
of operations for its fiscal year ended September 30, 2009.
Fiscal year 2009 was a year of significant growth in both
revenues and profits for Dynasil following the acquisition
of RMD on July 1, 2008. Fiscal year revenues doubled from
$17.1 million in FY 2008 to $34.4 million in FY2009; income
from operations doubled from $1.45 million to $2.84 million;
and net income increased by 33.5% from $1.16 to $1.55
million. Net operating loss carry-forwards for federal taxes
were exhausted during fiscal year 2008, so fiscal year 2009
net income was affected by provisions for increased federal
taxes, as well as higher interest costs relating to the RMD
acquisition. Also, fiscal year 2009 revenues from
commercial operations including the optics/photonics
products and instruments segment were impacted by the
worldwide economic recession. In spite of this, the
Company's business units all remained profitable, while its
contract research segment showed a substantial revenue
increase for the year and has about two years of project
backlog. Dynasil also initiated a review of the
intellectual property acquired with RMD and began the
initial phases of commercial development of this technology.
During fiscal year 2009, the Company paid down debt by $2.2
million and maintained liquidity with a cash balance of $3.1
million and an additional $1.2 million available from lines
of credit as of September 30, 2009.
"In light of the challenges presented by the global economic
situation, we are pleased with our fiscal year 2009
results," said Craig T. Dunham, President and CEO. "Our
2008 acquisition of RMD enabled our continued revenue
growth, which has averaged more than 70% per year for the
last five years. RMD also added new proprietary technology
with exciting commercial potential and the prospects for
acquiring additional intellectual property assets through
our contract research activities. In the case of government
funded research, we are normally allowed not only to make a
profit on that work, but also to retain commercial rights to
the technology that we develop. During 2009,
commercialization of that new technology became a major
focus area, with the result that we are currently pursuing
promising opportunities, some of which include: detectors to
help Homeland Security identify nuclear threats, faster
sensors for dynamic medical imaging, and crack detection
sensors to find very small cracks in objects such as
aircraft wings and turbine blades. Overall, we are very
excited about the profit potential for this technology.
Dynasil remains focused on growth of our commercial
operations through internal development and improved
efficiencies, as well as through active pursuit of
complementary acquisitions and commercialization of
technology from RMD."
About Dynasil
Dynasil is a rapidly growing manufacturer of specialized
instruments and products for a broad range of applications
markets in the homeland security/defense, medical and
general industrial sectors. In addition, the Company is
engaged in a significant amount of contract research for the
government and private industry. Dynasil and its
subsidiaries have operations in New Jersey, New York and
Massachusetts.
This news release may contain forward-looking statements
usually containing the words "believe," "expect," "plan,"
"target," "intend" or similar expressions. These statements
are made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act. Future results of
operations projections, and expectations, which may relate
to this release, involve certain risks and uncertainties
that could cause actual results to differ materially from
the forward-looking statements. Factors that would cause or
contribute to such differences include, but are not limited
to, the factors detailed in the Company's Annual Report on
Form 10-K and in the Company's other Securities and Exchange
Commission filings, continuation of existing market
conditions and demand for our products and services.
Dynasil Corporation of America and
Subsidiaries
Consolidated Balance Sheets
September 30 September 30
2009 2008
---------- ----------
ASSETS
Current assets
Cash and cash equivalents $3,104,778 $3,882,955
Accounts receivable, net 4,053,742 3,390,703
Inventories 2,371,516 2,909,730
Deferred tax asset 290,100 233,500
Other current assets 306,848 259,896
---------- ----------
Total current assets 10,126,984 10,676,784
Property, plant and equipment, net 2,744,724 2,694,290
Other Assets
Intangibles, net 7,232,035 7,767,258
Goodwill 11,054,396 11,054,396
Deferred financing costs, net 64,637 81,136
Other assets -0- 8,360
---------- ----------
Total other assets 18,351,068 18,911,150
---------- ----------
Total Assets $31,222,776 $32,282,224
========== ==========
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities
Short term note payable -0- $490,117
Current portion of long-term 1,749,524 1,649,101
debt
Accounts payable 773,837 877,525
Accrued expenses and other 1,171,790 1,620,692
current liabilities
Income taxes payable 507,122 36,476
Dividends payable 149,150 149,150
---------- ----------
Total current liabilities 4,351,423 4,823,061
Long-term debt 8,386,796 10,178,420
Stockholders' Equity 18,484,557 17,280,743
---------- ----------
Total Liabilities and Stockholders' $31,222,776 $32,282,224
Equity =========== ===========
Dynasil Corporation of America and Subsidiaries
Consolidated Statement of Operations
Twelve Months Ended
September 30
2009 2008
Revenues
$34,363,674 $17,116,341
Cost of Revenues 20,629,501 11,307,034
---------- ----------
Gross Profit 13,734,173 5,809,307
Selling, general and 10,891,096 4,359,493
administrative ---------- ----------
Income from Operations 2,843,077 1,449,814
Interest expense - net 735,317 214,090
---------- ----------
Income before Income Taxes 2,107,760 1,235,724
Income Tax expense 556,462 73,757
---------- ----------
Net Income $1,551,298 $1,161,967
========== ==========
Net Income per share
Basic $0.08 $0.12
Diluted $0.08 $0.12
Weighted average shares
outstanding
Basic 11,373,837 7,752,809
Diluted 12,328,261 8,871,825